NEW YORK (AP) -- Chicken producer Pilgrim's Pride Corp. says Brazilian beef producer JBS SA will buy a majority stake in the company out of Chapter 11 bankruptcy in a deal valued at $2.8 billion.
Pilgrim's Pride has agreed to sell 64 percent of stock in the reorganized company to JBS for $800 million in cash. Existing shareholders will receive shares totaling 36 percent of the company.
Pittsburg, Texas-based Pilgrim's Pride was the nation's largest chicken producer before it filed for bankruptcy protection late last year.
The sale gives JBS an entry in the U.S. poultry market. JBS is already one of the top producers of beef and pork in the U.S. and owns JBS Swift in Greeley, Colo.
The company says it expects the plan to be confirmed in time to emerge from bankruptcy by December.
Copyright 2009 The AP.